{"id":50010735,"date":"2018-03-07T07:00:02","date_gmt":"2018-03-07T07:00:02","guid":{"rendered":"https:\/\/stage.dialogochino.net\/?p=10735"},"modified":"2019-02-20T16:49:27","modified_gmt":"2019-02-20T16:49:27","slug":"10735-year-of-elections-will-bring-china-closer-to-latin-america","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/business\/10735-year-of-elections-will-bring-china-closer-to-latin-america\/","title":{"rendered":"Year of elections will bring China closer to Latin America"},"content":{"rendered":"

Within the space of a year, citizens from 11 Latin American and Caribbean countries will elect new presidents that are likely to forge even closer ties with China.<\/p>\n

The reason for greater cooperation, experts say, is a region-wide trend towards a \u2018neoliberal\u2019 economic model that originated in the US and Europe and promotes the deregulation of industrial sectors such as mining \u2013 upon which relations with China are based.<\/p>\n

“We can already see this trend in administrations like [Mauricio] Macri’s in Argentina, Lenin Moreno in Ecuador, and the return of [Sebasti\u00e1n] Pi\u00f1era in Chile,\u201d said to Di\u00e1logo Chino<\/em> Margarita Fl\u00f3rez of Colombian non-government organisation Ambiente y Sociedad (Environment and Society).<\/p>\n

Even the left-wing governments that preceded these were neoliberals, who include openness to foreign capital and a trade surplus in their economic policies. \u201cThere have been no barriers to oil drilling or use of any other type of natural resource in any progressive government,” Fl\u00f3rez said, warning of the dire social and environmental consequences.<\/p>\n

This policy orientation matches China\u2019s interest in investing in public works and continuing to extract raw materials<\/a>.<\/p>\n

Election year<\/h2>\n

The current wave of Latin American presidential elections began in November last year with the disputed election of incumbent Juan Orlando Hernandez in Honduras. Chile followed in December, with the return of the businessman Sebasti\u00e1n Pi\u00f1era<\/a>, who will take office on March 11. Also in March, and for the first time in 60 years, Cubans may see someone outside the Castro family assume power.<\/p>\n

China has had to adapt to the ideological and political changes in Latin America and the Caribbean because it benefits from the region<\/p><\/blockquote>\n

In April, Costa Rica will hold a second round of elections. Paraguay, which does not have diplomatic relations with China, will also elect its president and troubled Venezuela has set a date of April 22. Voters will choose a president for the Caribbean island of Barbados in May, while Colombia<\/a> will hold its first presidential election with the participation of decommissioned guerrilla group FARC, which is now a political party of the same acronym – the Common Alternative Revolutionary Force (in English). On July 1 Mexico<\/a> will elect a new president, and Brazil will hold first round of elections on October 2.<\/p>\n

“China has more experience dealing with leaders from both left and right (or in between) from a number of countries and so are likely to be able to engage in their preferred ‘pragmatic’ style,” said to Di\u00e1logo Chino<\/em> Matt Ferchen of the Carnegie-Tsinghua Centre for Global Policy in Beijing. Ferchen added that perhaps the more important issue is the quality of governance and that this is a crucial yet complicated issue in almost all of the countries with upcoming elections.<\/p>\n

According to Ferchen, China has yet to show a deep understanding of these governance challenges and instead mostly offers “development” based engagement through trade, investment and loans. “Maybe that’s better than a country that seeks to deeply involve itself<\/a> in the affairs of others, but it also limits the breadth and depth of relations to mostly commercial matters.”<\/p>\n

Margaret Myers, director of the China and Latin America programme at think tank the Inter-American Dialogue said China has had to adapt to the ideological and political changes in Latin America and the Caribbean because it benefits from the region.<\/p>\n

“Beijing wants to expand foreign trade, employ reserves and excess capacity, and also implement its businesses in construction and other areas,” she told Di\u00e1logo Chino<\/em>.<\/p>\n

Loans and agreements<\/h2>\n

Most of the countries holding elections feature highly on the list of recipients of Chinese loans. According to the Inter-American Dialogue<\/a>, China Development Bank and the China Export-Import Bank have lent more than US$ 141 billion to companies and governments in the region, by far outpacing the World Bank and the Inter-American Development Bank.<\/p>\n

“The volume and conditions of loans made by the Chinese banks have created a relationship of dependency, without room for future governments to manoeuvre. The multilateral banks do not have the economic capacity to meet the high demand for financing in more developed economies in the region,” said Paulina Garz\u00f3n, director of the China-Latin American Initiative for Sustainable Investments (IISCAL).<\/p>\n

“China has a well-planned long term strategy to strengthen its relationship with Latin America and the Caribbean, and has created the instruments needed to implement this strategy, such as, for example, bilateral cooperation accords, the China-CELAC cooperation plan, [and] mechanisms for regional and bilateral dialogues,” Garz\u00f3n added to\u00a0Di\u00e1logo Chino.<\/em><\/p>\n

China\u2019s largest debtor is Venezuela<\/a>, which owes US$62 billion to be repaid in oil revenues, according to an agreement<\/a> signed with former president Hugo Ch\u00e1vez. His chosen successor, President Nicol\u00e1s Maduro, is expected to be re-elected, amid an expected boycott from the opposition, which alleges there will be fraud.<\/p>\n

\n

US$37 billion<\/p>\n

\n
\nChina has invested into Latin America as of 2015
\n\n <\/div>\n <\/div>\n

China\u2019s second-largest borrower is Brazil, with a US$36.8 billion debt to China, according to<\/a> the Inter-American Dialogue. China has invested more in the continent\u2019s largest economy than any other, some US$37 billion as of 2015, according to data<\/a> from the Brazil-China Business Council.<\/p>\n

In October, Brazilians will elect a new president and the relationship<\/a> with China is expected to grow even more, according to Luiz Augusto de Castro Neves, vice president of think tank the Brazilian Centre for International Relations (CEBRI).<\/p>\n

“China is looking to ensure supply for its needs: oil, gas, raw materials, investments in infrastructure, because Brazilian infrastructure is very precarious and is a burden on productivity. This will be good for us and will be good for China, which is our main importer,” said to\u00a0Di\u00e1logo Chino\u00a0<\/em>Castro Neves, also a former Brazilian ambassador to China.<\/p>\n

“We all know that, with this actor (China), there needs to be a connection. In one way or another, the models that exist in the region will look for integration, whether bilateral, on a sub-regional level \u2013 as in the case of the Pacific Alliance \u2013 or regional<\/a>,\u201d said to\u00a0Di\u00e1logo Chino\u00a0<\/em>Fernando Reyes Matta, director of the Latin American Centre for China Studies at Chile\u2019s Andr\u00e9s Bello University.<\/p>\n

Reyes Matta is a former Chilean ambassador to China, and cited Chile as an example of continuity and even closer relations with China. President-elect Pi\u00f1era was elected has already met with Chinese Foreign Minister Wang Yi.<\/p>\n

“Regardless of which political parties take power this year, China will continue to be an attractive partner for for the region. If relations with the U.S. fail to improve, China could establish an even stronger foothold in the region,” said to\u00a0Di\u00e1logo Chino\u00a0<\/em>Guy Edwards, co-director of the Climate and Development Lab at Brown University. “If relations with the US do not improve, China could establish an even stronger point of support in the region,” he added.<\/p>\n

One key factor, according to Edwards, is the extent to which China is willing to demonstrate its interest in diversifying trade and financial ties with the region, which up to this point have been concentrated on natural resources.<\/p>\n

He said that \u201ca\u00a0greater focus on Latin America’s need for investment in sustainable infrastructure including in renewable energy and electric public transport could be a game changer for China-LAC relations and take an important step towards aligning their partnerships with the Paris Agreement and the Sustainable Development Goals.<\/p>\n","protected":false},"excerpt":{"rendered":"

The continued deregulation of strategic sectors of interest to China could hurt the environment<\/p>\n","protected":false},"author":40000225,"featured_media":50023617,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[758],"tags":[50029993,556,600],"hashtags":[],"country":[50000020,50000021,50000024,20000110,50000025,50000023,50003534,50002594,50002597,50002600,50002604],"class_list":["post-50010735","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-elections","tag-infrastructure","tag-trade","country-argentina","country-brazil","country-chile","country-china","country-colombia","country-costa-rica","country-cuba","country-ecuador","country-mexico","country-paraguay","country-venezuela"],"acf":[],"yoast_head":"\nYear of elections will bring China closer to Latin America | Dialogue Earth<\/title>\n<meta name=\"description\" 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